Okay, here we go. Good morning, everyone. Thank you for joining us for the Twist Management Presentation. Normally, Emily Leproust, the company's CEO and Founder, is here. She has two sturdy replacements in her stead as she recovers from a ski accident. We wish her well. Dr. Patty Finn, President, COO, and CFO Adam Laponis are here with us today, as well as Angela Bitting from IR. Thank you to the team for being here. Two quick notes. The breakout session following this is in Jenny B. You can track with us up there if you'd like. A second, for a complete list of our disclosures or possible conflicts of interest, please visit our website at williamblr.com. If we do wrap up early, we may take a couple questions.
For now, I'll turn it over to Patty. Thanks very much for being here.
Thanks, Martin. That's the first time we've been called a sturdy replacement. Thank you for the choice of words. Thank you for your time and attention today. I'll start with our legal comments. Obviously, there are forward-looking statements. There'll be a test on this slide at the end. Okay. Twist Bioscience, we've revolutionized DNA synthesis, miniaturizing DNA synthesis onto a silicon platform where one chip allows us to write 1 million oligonucleotides in one run. Unprecedented scale, unprecedented quality. The DNA that we produce is absolutely best in class, which creates many, many opportunities for expansion of our product portfolio. We started with DNA. There's an opportunity to expand into RNA and proteins, which allows us to drive more products to more customers, serving more applications into high-value, high-growth markets, all underpinned by our DNA written on our silicon platform.
As we drive forward as a business, we're approximately 10 years into being a commercial entity, and we continue to show growth. We have multiple advantages, starting at the very top of the organization, where our understanding of our end markets is incredibly deep. The company was founded by scientists and engineers. Leadership of the team has strength in DNA synthesis, and our knowledge across the markets we serve is very, very broad, but also very, very deep. That understanding of the end market allows us to take our platform and drive through a culture of innovation to make great new products happen to serve these customers. The technology's proven.
We have capacity to make 60 million oligonucleotides per day, incredible diversity, which allows us to drive strongly differentiated products into the market, partnered with excellence in commercial execution, is gonna set us from where we are today on our drive to $1 billion of revenue. It is my favorite financial slide up and to the right. We are driving towards profitability. We continue to see revenue and margin growth. The high fixed cost business model that we have is absolutely working. We are validating that every quarter as the revenue lifts. I have some data to show later. You can see margin expand. We have strong operational and commercial execution serving our customers. Our knowledge of our platform and applications allows us to improve and continuously upgrade the platform and drive new products to market, which allows us to take market share.
In addition to that, we take our unfair advantage, high throughput DNA synthesis, to allow us to expand our share of wallet that we take with our customers. That is underpinned, of course, by the wonderful opportunity to drive into growing markets. We are gonna smash through that door and get across to adjusted EBITDA break-even. Oh, excuse me. I like these slides just given the numbers behind my earlier comment. Consistent execution, driving up and to the right with revenue. You can see the margin continue to expand. It starts from a low spot in fiscal year 2023 Q2, which scaled up with our new factory. Quite frankly, we have grown into that capacity. You can see the discipline in spend holding pretty flat across SG&A and R&D expenses.
As the revenue's grown, the margins expand, and we've showed good discipline in OpEx. You can see that truly the business is taking very, very, very good shape. Just clicking a little bit closer here, I enjoy this slide enormously. It's good to see quarter-by-quarter execution. It backs up and validates the comment that, you know, the commercial execution is strong from the team. The other thing this says to me is each and every twister, whichever channel it is, is touching the customer, should be a very, very positive, strong user experience for our customers. We help them solve their major challenges. Retention and quarter-by-quarter drive and results like that is truly underpinned by attention to detail every single day. That's when we're out marketing, selling, making, shipping product, making sure that our customers have that positive experience on our platform.
You can see the breakout by products across our SynBio, next-generation sequencing, and biopharma segments. There have been multiple growth drivers for us. Near-term growth is commercial execution, multi-channel development, including a strong digital channel to drive us into the tail of the market. We have geopolitical tailwinds. Tariffs are actually helpful to us. We're made in America. We manufacture in South San Francisco and up in the Northeast in Portland. We have a new product line that's allowing us to accelerate our business, both sides of our customer base. Enterprise selling, fast product, and express product portfolio allows more turns per year, which drives growth. Also, being quick allows us to drive into the academic segment, into a long tail of life science researchers who want to utilize our platform and our products to drive their research.
From a product standpoint and segment standpoint, we've got some really interesting growth drivers. Again, coming back to the earlier comment about our awareness of markets and customer needs, we place bets many, many years in the rear. Liquid biopsy is a bet that we placed back in 2017, which we're starting to see come to fruition now. Our portfolio for pharma, the year after, to start to build out discovery capabilities and full SynBio product offerings that serve the pharma base continues to expand. As a business, we were doing quite well. We'd proven we could make our technology work. We've proven that we could get products out to the market and sell fairly effectively against the competition and serve customer needs. At that point, we added operational expansion behind the sales team to drive us into the market with the factory of the future in 2022.
Again, unprecedented scale, capacity to make 3 million clonal genes per year. There's nothing else like that. We also pointed the platform, again, our ability to write a million oligonucleotides per chip run and minimal residual disease opportunity that we're starting to see come to fruition, back in 2022. In our expertise in next-gen sequencing workflows, we have a product called FlexPrep to help sustain the transition from microarrays using genomic analysis towards NGS. A very, very interesting upgrade where customers with fantastic economics can get onto the sequencing platform rather than the slightly narrower view of a microarray. Better data quality, improved economics. The team has really developed a reputation for successful execution of a long-game strategy. We're not bound by the classic strategic planning cycles of one year.
We're not tied to product vitality one, which is, you know, what % of revenue came from first-year MPI launches or new product launches. We truly do play the long game when we think about new product introductions. We have a very, very clear focus in the life sciences tool space. Three segments for us to think about, or three product lines for us to think about, our SynBio writing business, our next-gen sequencing reading business, and our biopharma solutions business. We're relentlessly focused in this space. The strong foundation in commercial execution. It's multiple channels touching different customer types. Inside sales that's gonna help bring on and nurture new accounts. Digital marketing to let you know what's new and improved and how we're gonna help you solve your problems when you're doing your research.
An enterprise account management team backed up with a strong customer success, customer service team to make sure the customer has a positive experience when they come onto the Twist platform. Two tools to simplify how you purchase from us. Business-to-business tools that get us into the top procurement systems used across the globe. An e-commerce platform, which to quote our CEO, the DNA is free. The customer's paying for that user experience. The simplicity of getting onto our platform to buy the piece of DNA that you need for your research is hugely simplified, totally intuitive. I would say so simple, I could use it. The platform's proven. Disruptive products and services, again, underpinned by the ability to write a huge number of oligonucleotides in parallel. We continue to innovate.
I won't read all of the slide. I'll pick out a couple of highlights per. Again, the ability to write oligonucleotides the way that we do at the scale that we write at is going to open up opportunities in the SynBio business for us. In the mRNA space, for discovery, for writing long oligonucleotides, higher-mass single-stranded DNA, which serves a number of very, very interesting applications in the very near future. Milligram-scale plasmid preparation is a market pull dragging us towards scaling up synthesis to a very high-grade quality and ultimately GMP to serve our customer base as we go forward. It comes back to the wallet share expansion strategy I had mentioned earlier. On the NGS or sequencing side or read side of our business, we continue to see opportunities to innovate and deliver great product to the sequencing community. I mentioned very briefly, some of our library prep kits with FlexPrep.
We have a cell-free library construction kit underpinned by our own enzymes that give best-in-class workflow. If you're going to run a sequencing assay, you really do want to make sure you sequence everything that's in the sample. Our workflow, our enzymes, and our obviously Twist DNA allow us to make sure the customer captures every molecule, gets it onto the sequencer, runs a better assay. There are more regulated products in our future. Liquid biopsy's been good to us. The clinical space benefits from being on the Twist platform. In a B2B and regulated environment, quite frankly, there are stories in the industry where customers using our product as a business survive. Those that do not, do not necessarily make it. That is underpinned by the fact that we enable better, more cost-effective sequencing. We have menu expansion. A sequencer is not just a sequencer. It is a readout platform.
There are lots of different workflows up front of the sequencer, including RNA applications, methylation. I mentioned very briefly, the microarray's time is up, and it's time to move that platform from the array onto a sequencer. We have some fantastic products to support and enable that transition. Biopharma solutions, just our range and diversity of product. Our combination of in vitro and in vivo discovery is absolutely rock solid and totally differentiated on the market. Our strength utilizing the Beacon platform and discovery is unmatched. We are adding some new products and innovation around humanized mice to support our in vivo discovery. Obviously, antigen generation for a high-throughput IgG, or accelerating the pace at which we can support our customers as they go through the drug discovery process. We have also added an enzymology capability. I'm gonna read this slide from bottom to top.
Our core strength is DNA synthesis, massive molecular diversity. What we started to do is utilize our own synthesis capability to allow us to create novel enzymes with features that are interesting to various applications. With internal enzyme engineering capability, with the use of AI tools and our knowledge of applications, which partner with high throughput and high speed, that's what Twist is good at, is allowing us to drive really interesting products and improvements into each of our businesses. In the SynBio right side, if we make our own enzyme, the economics change versus sourcing from outside. If we evolve or screen for features that are enabling, it's very successful for writing high-quality genes. Also, it just secures our supply chains, a nice and stable, rock-solid supply.
On the reading side, it allows us to put our enzymes into kits. It gives us greater differentiation in sequencing workflows, better performance for the customer, and again, single source. If you're in a clinical application, having a single source of workflow solution, it's one neck to choke in the event that something goes wrong. We've seen that take great traction with our diagnostic customers. We utilize the same platform in biopharma to give us further differentiation in our discovery business. DNA synthesis drives novel enzymes, drives interesting applications, which gives us the opportunity to expand wallet share. We partner that with what else is it that makes us strong? It's a broad strategic moat. Obviously, I talked about customer needs and the channels. We've industrialized the customization of biology. It's a good analogy. It's like Starbucks. Your coffee is any way that you like.
It's the same when customers come to buy DNA. There's so many different flavors of DNA they want to buy that we've managed to develop a method to customize and serve that customer need. Digitized operational workflow and supply chain is incredibly important. The capacity to make 3 million genes, put in the right nucleotide, in the right gene, in the right tube to the right customer on the right day with the right invoice requires meaningful infrastructure scaled by automation. That's really another core competence that we have. Some of our competition is manual labor to deliver your DNA products. We are absolutely completely opposed to that. Our methods are all scaled using automated tools, which allows us to drive the 3 million genes, 60 million oligonucleotides, capacity. There's a billion-dollar infrastructure investment underway. That's gonna push us forward commercially.
We have a relentless focus on innovation. We have no place for me too products. We wanna disrupt. We want to enable. It is exceptional research and regulatory scale. That is whether it is a clinical test that you are developing or you are in academic research looking for your next great publication or discovery. It is an incredibly diverse team of expertise with a very unique culture. It is a very strong foundation, very strong and capable and broad strategic moat. We are now positioned to drive volume. Capacity is in place. The factory of the future from 2022. We have low variable cost, heavy fixed cost. We are on drive to have $700 million plus in capacity with options to expand depending upon customer need and product mix. We are using less than 50% of capacity today, but the investments made in automation to drive us through at $700 million plus in capacity.
Fixed costs hold relatively flat. That is good. The investment is made. The fixed cost is high, but that is allowing us to drive margin expansion. The last bullet point is the most important one from a business standpoint. 75%-80% of incremental revenue growth is dropping to our gross margin line. You could see that earlier in the bar graph showing revenue up, margin expanding, strong cash position. Just a slightly deeper dive in the SynBio, the writing side of our business. We serve large end markets, pharma biotech, industrial chemicals, agriculture, and academic labs with incredibly diverse applications. Target discovery and validation, antigen production, antibody discovery. Look at the pipeline of drugs working away, through the FDA today. It is predominantly new biological entities. It all starts with a piece of DNA.
We can screen and produce at scale of our enzyme protein cellular engineering, customer segment, protein expression needs, and then obviously in editing applications. It is all underpinned by the products listed. Genes, whether it is clonal or express, fragments, non-clonal multiplex, gene fragments, oligo pools, variant libraries, IgG proteins. A diverse range of products serving a diverse customer base. If you look, and the important point in the slide is it all comes back to writing DNA on our silicon platform. A little slide on carbon footprint. Because we have miniaturized chemical synthesis of DNA, if you use the old-school methodologies, the carbon footprint of making one gene is the equivalent of a 59-mile drive. Old-school methods, 59-mile drive. When you are on the Twist platform, it is quite a good way to capture what miniaturization means.
It's a 0.092-mile drive equivalent using the Twist platform because the amount of reagent used to make a gene is so incredibly small. It helps us drive commercial differentiation of speed, cost, scale, quality, user experience, innovation, and simple and frictionless e-comm. We expand our wallet share over time. It expands into the customer's value chain. It's a gene fragment, the easiest and simplest product to get onto the platform with a non-clonal piece of DNA. Friends don't let friends clone, so we'll do clonal genes to help the customer, save them time, save them money, give them throughput. We'll prep the DNA to get it into any form that you want. We'll make the IgG, your antibody, your protein, whatever it is that you're looking for downstream of DNA. We're starting to do antibody characterization. With every step, you can see us growing with the customer, growing into wallet share. That serves pharma biotech, industrial chemical, and academic segments.
On the sequencing side of the business, fantastic large and high-growth markets, diagnostics, basic translational research, and ag-bio. Incredibly diverse applications, liquid biopsy. It's been very good to us as we've grown the business. Clinical population, cognitive genomics, oncology research, minimal residual disease, MRD. I'm sure you're all aware of what's happening there. Rare disease, single-cell analysis, variant detection, biomarker identification, trait selection. Again, a whole series of innovative products, well-differentiated products that serve this customer base. Whether it's fixed panels, custom panels. If we have a scientist that's come up with a panel of real interesting content, then we make what's called an alliance panel, where we make those sequences available to the broader community.
We have workflow solutions, library prep kits, underpinned by our own enzymology, our reagents, and controls and standards, all wrapped into products that, again, makes it easy for the customer to buy and utilize our products. It all comes back again to our ability to write DNA on our silicon platform. Just another one comparing, yeah, carbon footprint for the year. If you went back to old-school methodology for making DNA, that's a lot of carbon dioxide equivalents to deliver on annual volume. You can see the difference when you move to the Twist platform. Miniaturized reagent, massively parallelized synthesis. You can see the difference in carbon dioxide equivalents for us to deliver on a year's worth of products. We win in the market based on quality. Our oligonucleotides, our DNA building blocks, are of unmatched purity, unmatched quality.
It allows us and enables us and enables our customers to use our product to spend less of their budget on sequencing. It costs the same to use Twist enrichment products, but the saving for the customer is in the sequencing cost. Better enrichment, lower cost of sequencing. Again, for our customers, it can be an extinction event to not be on the platform. Those that use our platform save costs of sequencing. Their P&L improves, their business improves. If you're on some old-school methodologies, there are examples in the market where that's not been the case. Comprehensive workflows that allow us to take wallet share. It also allows us to provide best-in-class support to our customers as they grow. You can customize rapidly.
The entry to get onto old-school methodologies to test your panels, it's a high barrier. Imagine a few dollars per oligonucleotide. If you want to screen a million oligos, that's an expensive first experiment. It's completely different to get onto our platform. Cost-effective, quick, super fast throughput. We also have a lovely position in the community. I'm sure you've seen there's new sequencers hitting the market where it doesn't matter what the readout is, a Twist product will set upfront and serve whichever sequencer is doing well in the market. We're expanding our order volume as customers scale. We're here to support the customers as they go out into market. It's a cost-effective starting point, but the platform scales quite beautifully. It starts with an R&D pilot, a quick experiment, a few samples, however many probes you need to prove out what product it is you're trying to make. The customer's gonna test or design-build test, quickly optimize to where they need to be from panel content.
They'll move to verification and validation, so they start to scale up. They'll move to clinical studies and ultimately into commercial ramp. Our platform scales along with the customer. We become a supply chain partner. As they grow, we grow with them. As they hit market, the product quality does not flinch. We're there to support them as they drive forward. Again, that's whether it's minimal residual disease, liquid biopsy, rare diseases, therapy selection, cancer profiling, or NIPT. Again, super quick to get on the platform, super cost-effective because we've miniaturized DNA synthesis at scale. Again, excellent awareness of what the customer's looking for to help them get their asset to market. In biopharma solutions, we have a one-stop shop.
It's in vitro discovery and optimization, in vivo discovery and screening, in silico lead optimization, humanization, lead picking, and then advancements and improvements utilizing AI and ML tools. What that means is the customer gives us a target, and in return, we're going to give them antibodies, either the molecule or the sequences that are gonna be tight, high-affinity binders that's gonna allow them to move into their preclinical development pipeline. Quite frankly, we typically start with hard targets. You know, a few years ago, I think we were the antibody discovery partner of last resort. Customers start with something that's difficult, and then we start to win some of their easier business as they repeat and come back onto the platform. It's expanding wallet share over time. It's all underpinned by our ability to write lots of different DNA sequences.
It allows us to expand wallet share from $100 of a gene all the way up to $250,000 in a discovery project serving biotech or biopharma segment. With that business right now, we're just focused on execution, developing the commercial channel, working at how to sell a very custom discovery project very capably, leveraging our total product portfolio, building our opportunity funnel, and driving to revenue. It is a very, very strong fit with our SynBio product offering, which has grown well in the healthcare segment and particularly with pharma. It really does build out a strong product portfolio. Maybe this is the summary slide that catches all of my words. You just go across the businesses in the column on the right, obviously sequencing, SynBio, biopharma solutions, panels for target enrichment, library preparation, RNA-Seq.
Any workflow upfront of a sequencer can be underpinned by the Twist platform. On the writing side of the business, we're making oligonucleotides to make variant libraries. The oligonucleotides can be assembled into multiplex gene fragments, regular gene fragments, which can be made into clonal genes. The genes can be made into antibodies for discovery or into enzymes and proteins. The clonal genes can be made into an IVT template to make RNA. We can do de novo vector synthesis. The range and plethora of products in the green segment is vast. They feed into our in vitro libraries, our in vivo discovery, partner with AI to create really interesting antibodies that can be characterized. Maybe if I just flick that arrow back, it all comes back to run for advantage in writing lots of different oligonucleotide sequences per chip run.
To give you a feel for that scale, it is about 16 million or up to 16 million oligonucleotides per day. That ability drives us into high-value, high-growth, high-end markets. You can see that range of products shows diversity in business and a very, very robust and resilient product offering. Just a couple of financial comments. We finished Q2 fiscal year 2025. That is March 31 for us. Solid $92.8 million in revenue. Margin just a smidge under 50%. Adam would not let me round that one up. Our R&D expenses controlled at just a smidge under $24 million. SG&A at $63.7 million. The net income and loss, $39.3 million, and adjusted EBITDA of $14.8 million with $257.1 million of cash and cash equivalents in the bank.
I think it was May the 5th, and that was a guidance that we gave, $94 million-$97 million in revenue, broken down by product lines that have just been describing, and our expectations around adjusted EBITDA. I think, the slide speaks for itself. And then $372 million-$379 million for a fiscal year against September 30th finish, showing the breakdown per product, the gross margin for the year, and the adjusted EBITDA for the year. Our next chapter. Again, underpinned by market understanding, which drives strong differentiated products out to the market with our culture of innovation, with our scalable infrastructure. Again, the infrastructure is built to allow us to create incredible molecular diversity, interesting products with a technology that's proven into multiple commercial channels that are working quite effectively. We have the enormous privilege of serving growing markets that are solving humankind's toughest challenges today.
We'll continue to take market and wallet share, market share from, again, our scale, our DNA writing capability, wallet share from continuing to build more value into the products we deliver to our customers. We continue to invest in improving the platform, driving new products out to the market. It's partnered with strong operational and commercial execution. Again, you can see top line up, margin expanding, and that will continue. Revenue lifts, margin continues to expand. I think that's probably enough from me from a PowerPoint standpoint. Thank you for your attention. I almost beat the giant clock there, Matt. Stop right there. Thank you. Couple of questions?
I'll say the first question. The SynBio side here in the shots on gold business, right? You're helping whether it's academia or biopharma, with their basic research. Your five-year CAGR there is about 30% at a time where many of your competitors have been down consistently. And frankly, most of life sciences has been down. As you think about both this year and perhaps the pressure points more on academia than biopharma, and then over the next couple of years, what gives you confidence that in a challenging macro environment, you can continue to achieve that kind of growth?
No, Matt, thanks for the question. I think, if you look back over the last three years, Twist has done very, very well in that biopharma space when budget pressures were, I'll call it, budget pressures were in focus. What we see and saw at that time is what we offer is more shots on goal with faster turnaround times, higher quality, and lower pricing. In a budget-constrained environment, Twist performs very well. When we look to the academic markets, we do see the pressures that our customers render. We've been able to respond with some pretty innovative offerings operationally in the last couple of months. More importantly, what we see is it's an area where we're underpenetrated, and we know we have the opportunity to take share, because when your budgets are under pressure, the Twist solution offers you more shots on goal.
It is an opportunity for customers to look up and say, maybe I'm gonna look at my supplier differently. We see an opportunity to take share by being there for our customers and focusing on their needs and ultimately penetrating in a market where we have underpenetrated historically.
NGS has grown from $2 million in 2018 to $200 million in the most recent year. Much of that, probably some of that has been related to liquid biopsy, a market where there are many emerging and successful players. The next market you highlight is MRD, where today there is really one established behemoth and a number of entities trying to maybe disrupt. Maybe speak to how the MRD opportunity both resembles and might be different than liquid biopsy.
All right. Interesting emerging workflows there. We have offerings for three possible scenarios. There is a low-pass sequencing workflow, which is well-served by our novel enzymology capability. Best-in-class ligase captures every molecule, brings it onto the sequencer. It is a very, very enabling offering. If you see an example where it is fixed content and a panel like an excellent example, I think the economics of using the Twist platform is tried and tested. That is going to be a price-sensitive market. I think there is a likelihood of success there. Where the platform really shines, truly, truly shines is when you go to bespoke tumor-informed panels. That is what Twist is built for.
It's, you know, very low-cost entry to get onto the platform, super quick to turn around, you know, up to 10,000 probes into a tube as quickly as possible, ship to the customer. I think what you saw at, I think it was AACR just recently, those three workflows and the posters and data being presented on, you know, more specific, more sensitive tests using more complex panels. Quite frankly, that is really gonna leverage where Twist is strong. We look forward to that opportunity continuing to mature.
Great. Thank you very much. Thanks to everyone. We ran out of time, but certainly. Thank you, everyone.
Thanks, Matt.